The Google algorithm looks at the number of inbound links for each Web page it indexes as a measure of the importance of that page. The more links (citations) a given page has, the more important it is. In other words, Google taps the wisdom of crowds to help it determine what no computer can - just how good is that content?
Google democratized the process of evaluating quality by tallying links like votes. A link from a Webmaster is like a vote for another Web page telling its visitors - and, in turn, Google - that there's another Web site worth visiting.
PageRank was the breakthrough that gave Google the most relevant results. At the time, other search engines either relied on human editors judging quality or computer crawlers scanning copy on Web pages and looking solely for words that matched the query. As we now know, the former can be very subjective and the latter can be gamed.
In fact, the oldest trick in search engine optimization used to be stuffing keywords into page titles, headers, and body copy and, even better, putting white text on a white background so only the search engine spiders could see it. Of course, today, the major search engines all have ways to ferret out cheaters and spammers. In the late 1990s, though, it was all fair game until along came the Google spider with the crowd behind it.
Essentially, Google weighs links from authoritative Web sites - those with higher PageRanks - more heavily than those from low PageRank sites. Of course, we all know that Google eventually caved and launched AdWords in October 2000, setting the stage for what would become a $20 billion-plus annual revenue source by the end of the decade.
The irony is that today, a search for "cellular phones" on Google returns only the big brand-name wireless carriers who also happen to be major Google advertisers - in the top organic results. But this speaks less to a sellout on Google's part and more to the fact that brands can be answers too.
Similar to PageRank for organic search listings, Google put the crowd to work in its advertising algorithm. Rather than giving the top spot to whoever is willing to pay the most, Google incorporates a variety of other criteria into its ad rankings to generate what it calls the advertiser's Quality Score.
The factor weighted most heavily here is the click rate of the ad and the advertiser. In this sense, Google tallies votes by consumers for which ads and advertisers are the most relevant for each query. Conveniently, because Google AdWords are priced on a costper- click basis, the ads that generate the highest click rate also yield Google the most revenue per query.
But Google also looks at the relevance of the landing page used by the advertiser as well as other signals like geographic location when calculating Quality Score. And just as it does with its organic search results, Google has built-in measures to prevent advertiser spam. Google checks the IP address of computers searching and clicking on ads to prevent "click fraud" and "impression fraud." The former refers to Webmasters clicking on ads on their own sites to generate revenue. The latter refers to advertisers searching for ads from their competitors and intentionally not clicking to decrease their click rates.
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